Anyone buying Condos Downtown/ Other Real Estate?
- Thread starter snowdon
- Start date
I think the only way you can get a decent yield on a DT condo is by going the AirBnB route but you're subjected to a lot more regulatory risk from the municipality. Especially with the vacant home tax coming into play, its going to make flipping less profitable.
I started investing in property about 12 years ago and I've always gone with duplexes/triplexes in the GTA or single family homes in smaller cities like Hamilton or Ottawa. I'm a boring old fashioned guy so I prefer good consistent cash flow when it comes to property. If I want highly leveraged capital appreciation I'll go with stock futures.
I started investing in property about 12 years ago and I've always gone with duplexes/triplexes in the GTA or single family homes in smaller cities like Hamilton or Ottawa. I'm a boring old fashioned guy so I prefer good consistent cash flow when it comes to property. If I want highly leveraged capital appreciation I'll go with stock futures.
Residential real estate in the gta is not as good as I would like. I've been considering it for years but when Covid hit I did more detailed the research. I concluded that up front costs are high and returns from rental are not great. It could be better if you make improvements and increase rental fees. I think the majority of your returns will come when you re-sell the property. If you are considering duplex /triplex houses or multi-unit, you could look at a BRRR strategy. Most people doing BRRR are doing it in areas outside the gta (Hamilton, London, Kitchener, Guelph, Barrie, Peterborough,...)
In today's market rental rates are dropping. It may take you some time to break even. AirBNB is an option and I think has a future depending on location. Anything outside of the downtown core will get less traffic because of competing AirBNB locations.
You can make money if you are willing to put in the work but for me it's not worth the headache. I'd rather not deal with the headache of being a landlord or an AirBNB host. I've heard a lot of horror stories about bad tenants and people getting sued. I'd rather invest the capital in stock trading. If you know what your doing 40% in a year is easy takes less than an hour a day.
On the other hand, Toronto real estate seems to have survived the pandemic pretty well and continues to go up regardless so what do I know?
Last thing....I'm surprised at what people are considering livable condos these days. Some of these units are 400 square feet without a separate bedroom!
In today's market rental rates are dropping. It may take you some time to break even. AirBNB is an option and I think has a future depending on location. Anything outside of the downtown core will get less traffic because of competing AirBNB locations.
You can make money if you are willing to put in the work but for me it's not worth the headache. I'd rather not deal with the headache of being a landlord or an AirBNB host. I've heard a lot of horror stories about bad tenants and people getting sued. I'd rather invest the capital in stock trading. If you know what your doing 40% in a year is easy takes less than an hour a day.
On the other hand, Toronto real estate seems to have survived the pandemic pretty well and continues to go up regardless so what do I know?
Last thing....I'm surprised at what people are considering livable condos these days. Some of these units are 400 square feet without a separate bedroom!
I hope you got a good deal. IMHO, many people who lived in downtown moved to suburbs and many people will continue working from home, so, there may be excess supply of downtown condos in the short-run (2-5 years), but maybe it will pick up in 10-20 years.
Yeah, good points. I bought 70k and 50k under price compared to 2019. So realistically if I sold today that would be a net profit as there was a V- shaped recovery in demand. Rental still remains depressed but I'm ok with letting them sit.
I actually liquidated my stock portfolio to buy RE, so we'll see with all this money printed...
I actually liquidated my stock portfolio to buy RE, so we'll see with all this money printed...
IMHO, condos are not the best asset to let sit idle as condo fees are pretty high and they do not appreciate as much as a nice lot with a rundown a house. But they are much easier to rent and require less maintenance
. Anyway, congrats on the purchase and welcome to the landlordship As the Govt just borrowed so much I highly doubt that. Unless all the Govts get together and decide to "reset" parts of the debt they can't afford to hike rates.
Interest rates rising haven't been a problem since 2008, and you can rest assured after COVID they wont be going anywhere.
BoC has also already stated that the rates will remain near zero until 2023.
I think people will eventually move back to the downtown core.
Once people are forced to come back to those office towers they will get sick of commuting from the burbs. Plus there is always a new batch of college grads getting hired to fill those office towers and need somewhere to live.
I say good investment.
Once people are forced to come back to those office towers they will get sick of commuting from the burbs. Plus there is always a new batch of college grads getting hired to fill those office towers and need somewhere to live.
I say good investment.
Many people start entering this kind of business nowadays, and it is an amazing tendency to see. People finally understood how easy it could be to achieve money, and they started entering platforms like playlouder.com to get information about how to enter the real estate business. I enjoy seeing people that start their careers in this field because I already know a lot of millionaires and billionaires who raised money in the same way. I am sure that with a bit of perseverance and work, Everyone could easily achieve every dream.
I always wanted a condo in the Bay-Bloor or Yorkville areas. I had changed from from using Toronto hotels to Airbnb condos in the past few years. The space and the privacy are appealing. I have had great times in Toronto and love the town and the people here. But I refuse to pay this hateful real estate tax on Americans who would just like to have one second home here. Maybe there should be huge taxes levied on Canadians who have a second home in the US. But two wrongs don't make a right.
Also, the upsurge in crime since COVID in the downtown TO core is a problem. The number of assaults on women and robberies and car thefts will cause further movement to suburbs and small towns in Ontario. The great charm of Toronto has always been the alive downtown. I may take all of my entertainment and recreational spending to Montreal and/or the US. I regret this.
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Condos as Airbnb earnings, in Toronto more and more condo boards won't allow short-term rentals, minimum 6 months rental.
